Shipping Basics in Southeast Asia.Pdf

Shipping Basics in Southeast Asia Congratulations! You’ve just decided on which eCommerce platform(s) to use to sell your products. Now you must ensure that the packages you send will land (softly) at your customers’ doorsteps, no matter where in Southeast Asia they’re located.

The amount of cross-border transactions between Singapore, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam is steadily increasing. In fact, the region’s cross-border eCommerce https://www.mordorintelligence.com/industry-reports/southeast-now accounts for more than 40% of the total eCommerce market asia-cross-border-e-commerce-marketin the region.

Many platforms and companies are still trying to figure out the https://businessmirror.com.ph/2019/07/29/as- e-commerce-booms-logistics-firms-rise-to-the- most efficient cross-border shipping methods to challenge/fully unlock new https://businessmirror.com.ph/2019/07/29/as- e-commerce-booms-logistics-firms-rise-to-the- challenge/market opportunities. And in this R&D stage, mistakes may be made. A package heading to Thailand may get lost at Vietnamese customs, and an Indonesian address may be mistaken for a humble Malaysian abode.

No matter where a package ends up, the end results are the same. Rather than receive glowing ﬁve-star reviews, you get dragged into https://www.chinabrands.com/dropshipping/article- solution-how-to-deal-with-and-avoid-aliexpress- disputes-12943.htmla three-way showdown between you, your customers, and your logistics provider. It’s essential to get acquainted with shipping basics across Southeast Asia to reduce the risks of virtual brawls and keep your company running smoothly. Shipping basics in Southeast Asia basics in Southeast Shipping

2 01Local versus international shipping

Most Southeast Asian countries have multiple options for domestic delivery. Sellers can choose from a national delivery service or a handful of private logistics companies.

If you don’t plan on expanding to other Southeast Asian companies, you might be content with whichever shipping company has an oﬃce closest to you. This is suﬃcient for most people—shipping times and methods within national borders tend to be more consistent across companies, and delays are usually rare.

On the other hand, international shipping can become complicated, and quality varies widely among providers. Cross-border sellers and their shipments have to deal with air or sea freight (aside from over-land transport), customs, box-opening officials, rejections, and, in worst-case scenarios, the complete and total destruction of a package. Each country follows different laws, documentation requirements, taxes and tariffs that limit what can and can’t be let into national borders. Shipping basics in Southeast Asia basics in Southeast Shipping

3 Factors to consider

The international shipping process can become so frustrating for companies that somehttps://aacb.com/why-logistics-is-so-important-to- ultimately drop any plans to expand. Want to ship supply-chains/ beyond your country’s borders? You must choose the right logistics company, preferably one that can help you navigate tricky customs laws and rules.

Start your discovery process by asking your potential logistics partners the following questions:

Pricing: Are their prices clearly stated and stable? Customer service: Are their bookings and deliveries done well? Speed: Do their packages arrive on time? Transparency: Does the company oﬀer an accurate and real- time track-and-trace system? Coverage: Is the company capable of delivering to any area in a speciﬁc country? Last-mile delivery: Do packages arrive safely at the customer’s address? Shipping basics in Southeast Asia basics in Southeast Shipping

4 Diﬀerent shipping methods

As a seller, you need choices for shipping methods—just like consumers. Some people only want to get their package as soon as possible, and you should give them that opportunity to pay extra for quick delivery.

But you’ll also get budget-conscious folk who don’t mind waiting a little longer to receive their purchases. If the only shipping option available is the ultra-fast-but-more-expensive one, your budget-conscious customers may not follow through on a purchase—or pay someone else to ship it to them.

Consumershttps://www.entrepreneur.com/article/328552 feel more empowered when they have diﬀerent choices, which ultimately helps in building brand loyalty. J&T Express customers can customize their shipping experiences to speciﬁc needs: from critical eCommerce store operations, package bundling, international shipping, and last-mile delivery. Shipping basics in Southeast Asia basics in Southeast Shipping

5 02Which eCommerce platforms work with which logistics companies?

When deciding on a shipping provider, check to see if it has an existing partnership with your preferred eCommerce platform. It could be quite costly to do all the back-end work for your online store, then ﬁnd out your eCommerce platform doesn’t support your shipping provider.

You can get around this mess by working with a logistics company that https://www.jtexpress.sg/software-integrationsdoes oﬀer integrations with the biggest and most reliable marketplaces https://www.jtexpress.sg/software-integrations https://www.jtexpress.sg/software-integrationsand platforms.

Pro Tip

J&T Express is integrated with most major marketplaces and webstores Shipping basics in Southeast Asia basics in Southeast Shipping

6 These three eCommerce platforms are popular with business owners who want to create their own storefront. Although they all have a variety of third-party integrations, some shipping companies may only work with one platform and not the other.

Find a shipping provider that plays nice with all three platforms! It’s a contingency plan in the event you need to switch platforms in the future.

Lazada, Zalora, and Shopee are the three largest eCommerce marketplaces across Southeast Asia. Each of them attracts thousands of sellers onto their respective platforms, selling products that are a hit with millions of buyers per year. They also work with diﬀerent shipping providers to fulﬁl incoming orders coming from disparate local and global locations.

But as mentioned above, not all shipping companies work with (or are oﬃcially supported by) these big marketplaces. And not all shipping companies accommodate purchases from all platforms. Customers get peace of mind when they know their go-to eCommerce platform has a group of reliable shipping partners, and vice versa. Shipping basics in Southeast Asia basics in Southeast Shipping

7 03Use a shipping service that can partner with you in the long-term

If you’re going to ship often, consider creating a contract or partnership with one company that can do pick-ups and drop-oﬀs on regular days and times. It would be even better if they have seven-day delivery and pick-ups, because eCommerce takes no holidays!

Doing various types of shipments with just one service can help you estimate delivery times more accurately and work more smoothly. Coordinating the delivery of hundreds of packages a day with a single provider is hard enough. Juggling arrangements with multiple delivery providers for extended periods would be like swimming from Singapore to the Philippines—completely unreasonable.

Turning over your online store’s logistics needs to a third party does more than save you from extended hassles. It lets you focus on perfecting your product and marketing it to new customers. And you can say goodbye to endlessly comparing diﬀerent services’ cost and weight charts, too! Shipping basics in Southeast Asia basics in Southeast Shipping

8 04Be upfront with all shipping details

People may overuse the phrase “Honesty is the best policy,” but we all know it’s… well, true. And yes, this applies to local and international shipping as well.

We say this because in eCommerce, there are plenty of opportunities for miscommunication. Not all online shoppers think of shipping fees and guidelines when they start putting products into their cart. And once they do, they expect it to be free, no matter how much they order or how heavy their shipment is.

Since customers expect free shipping (or at the most, low-cost), any price padding would merit suspicion and refusal to ship at all. Don’t pad the shipping cost, or hide the actual calculations from your customers. You can either pass on the full charge or make it aﬀordable, but you need to be direct about it. Shipping basics in Southeast Asia basics in Southeast Shipping

9 Not meeting those expectations (and not communicating your Pro Tip own shipping policies clearly) will lead to guaranteed customer complaints and negative word of mouth. These also lead to lost sales and low proﬁts—something every eCommerce professional Customers trust that dreads. you will take care of Customers are shopping online for the convenience and perks the essential details. that in-store purchases lack. But they also trust that you will take care of the more essential details. These details can be categorized as follows:

marketplaces’ and the required duty return policies stores’ shipping payments for policies international shipping Shipping basics in Southeast Asia basics in Southeast Shipping

10 Shipping policies

https://www.crazyegg.com/blog/free-shipping/ https://www.crazyegg.com/blog/free-shipping/ That free-shipping expectation is a https://www.crazyegg.com/blog/free-shipping/psychological thing. The word ‘free’ implies that shoppers get a reprieve or a reward just by buying on a particular marketplace. The thinking then goes, “If I get something for free, I can spend more on other products.” And from their perspective, why should they pay for shipping at all when almost everyone oﬀers it for free?

Free shipping is determined either by the eCommerce sites and sellers themselves, or through the arrangements they have with speciﬁc marketplaces and shipping companies.

Let’s talk about the marketplaces and retailers ﬁrst. In Indonesia, marketplaces Bukalapak and Blibli use free shipping as a hook for buyers to purchase on these platforms, and for online sellers to sign up with them. This strategy has worked on both ends. The second-quarter 2019 eCommerce report made by the iPrice Group and App Annie Intelligence shows these two marketplaces securing

https://marketinginasia.com/wp-content/uploads/2020/03/2019-Year-End-Report-of-Map-of-E-commerce-iPrice-Group.pdf https://marketinginasia.com/wp-content/uploads/2020/03/2019-Year-End-Report-of-Map-of-E-commerce-iPrice-Group.pdf https://marketinginasia.com/wp-content/uploads/2020/03/2019-Year-End-Report-of-Map-of-E-commerce-iPrice-Group.pdf thirdhttps://marketinginasia.com/wp-content/uploads/2020/03/2019-Year-End-Report-of-Map-of-E-commerce-iPrice-Group.pdf and ﬁfth place at the national level.

Some regional eCommerce players opt to make shipping free for customers after certain thresholds are met. For example, Lazada, Zalora, and ASOS ship parcels for free once customers spend a given amount, or meet a total weight limit for their packages. Shipping basics in Southeast Asia basics in Southeast Shipping

11 The Philippines-based BeautyMNL is another Lazada publishes rate cards for its different excellent example of how to use free shipping as country markets, so make sure to check out your a sales magnet. It offers this for total transactions country’s Seller Center for details. Shopee, Zalora, exceeding PhP1,000, as well as on a customer’s and other marketplaces and retailers will also very first order on the platform. have different policies for their sellers/merchants, so you need to go through their resources and But if customers get free shipping... who decide which eCommerce site works for you. shoulders the shipping cost? It depends on where you’re selling your goods, and what their existing It’s also vital to check if your preferred rules are. This is critical because your products’ marketplace or retailer has partnerships with prices (and your revenues) can be impacted if shipping services. For example, Shopee has you take on the associated costs, or don’t partnered up with J&T Express through its account for them through product pricing and Singapore, Philippines, Malaysia, Indonesia, sales strategies. Thailand and Vietnam hubs. Depending on a seller's location, they can enjoy free shipping and use their own packaging for shipments meeting certain weight and size requirements. The other regional eCommerce players also have integrations with J&T Express.

Pro Tip

Check if your preferred marketplace or retailer Shipping basics in Southeast Asia basics in Southeast Shipping has partnerships with shipping services 12 DDU vs. DDP

If your customers will pay more than what they expect, they better know it long before they buy in. And in international shipping, this comes to the forefront in the form of two acronyms: DDU and DDP.

Think of it this way. Cross-border shipping is a three-stage deal comprised of three parties: the seller, customs, and the customer. But the path diverges once it gets to customs.

The seller takes charge of the entire process. They facilitate everything from the actual transport of goods and VAT on to customs duties and clearance, then get the parcel to a local logistics

https://www.investopedia.com/terms/d/delivery-duty-paid.asp https://www.investopedia.com/terms/d/delivery-duty-paid.asp hub and onto the customer’s doorstep. This is called Deliveredhttps://www.investopedia.com/terms/d/delivery-duty-paid.asp Duty

https://www.investopedia.com/terms/d/delivery-duty-paid.asp https://www.investopedia.com/terms/d/delivery-duty-paid.asp https://www.investopedia.com/terms/d/delivery-duty-paid.aspPaid or DDP.

DDP is ideal for customers because they don’t have to worry about anything—the seller takes care of all associated import costs. However, the seller can also take on more risks and expenses, such as when clearance is delayed, storage is needed, or goods are damaged in transit. Shipping basics in Southeast Asia basics in Southeast Shipping

13 https://www.investopedia.com/terms/d/delivereddutyunpaid.asp Then there’s DDP’s polar opposite: https://www.investopedia.com/terms/d/delivereddutyunpaid.aspDelivered Duty Unpaid or DDU, more recently referred to by the International Chamber of Commerce as Delivered-at-Place or DAP. Here, the seller pays for the expenses related to international shipping. After it lands in customs, the responsibility for clearance, import taxes, and package transport shifts from the seller to the customer.

With DDU, the seller takes on fewer risks and expenses, but the customer can shell out more than they’re ready for. This could then lead to abandoned shipments, negative customer feedback, lost online sales, and/or additional costs for return shipments.

If you’re selling your products on the larger marketplaces and retailers, you can use their existing logistics networks and policies for cross-border shipping. But if you’re managing shipments on your own, you’ll need to choose between DDP or DDU—and make sure your customers know where and when they’ll step in.

Note that J&T Express oﬀers International Line Haul and International Express Shipping, which enables sellers to choose between DDU and DDP. Please see the comparison table for international shipping on page 22. Shipping basics in Southeast Asia basics in Southeast Shipping

14 Return policies

Some eCommerce transactions just aren’t meant to last. The reasons will vary, but there will be instances when customer purchases have to be sent back to you, or be replaced with another product.

https://blog.moneysmart.sg/shopping/online-shopping-return-policy/ eCommerce marketplaces have https://blog.moneysmart.sg/shopping/online-shopping-return-policy/diﬀerent returns policies in place. These include which items can be returned under certain conditions (for instance, Lazada emphasizes that “change of mind” is not a valid reason), for how many days returns are allowed, and if an extra fee is required for that return trip to assortment. You will have to work with those policies.

But if you’re running your own store, you must make your own returns policy. This includes the options that your customers can take when sending a parcel back to you, including which shipping service is popular and has agreeable rates and delivery times.

And if your preferred service accommodates cross-border shipments, remember to include returns arrangements when you transact or negotiate a contract with them. This makes shipping easier for everyone, and lets the customer feel like they https://blog.moneysmart.sg/shopping/online-shopping-return-policy/ https://blog.moneysmart.sg/shopping/online-shopping-return-policy/ https://blog.moneysmart.sg/shopping/online-shopping-return-policy/ are still taken care of even after their digital cart has been by https://blog.moneysmart.sg/shopping/online-shopping-return-policy/MoneySmart emptied and shipped. Shipping basics in Southeast Asia basics in Southeast Shipping

15 05Pack ‘em right Spending all that time acquiring and marketing your products will be for nothing if they’re not packaged the right way!

Knowing how to pack your customer’s purchases is vital for two reasons. First, it helps you build up your online store’s public image. Sure, you can have all the latest consumer products in your own assortment. But never send them oﬀ in a sloppy manner, say, without a box, wrapped haphazardly with cheap plastic or bubble wrap, or smothering the whole thing with a roll of tape. That sloppiness shows your buyer you don’t value your business as much as you should. In turn, it shows them they shouldn’t value your store at all.

Second, great and well-executed packaging adds to the customer’s excitement during receiving and unboxing. The product is crucial, but the presentation makes it fun. Replace drab plastic and lifeless paper wrappers with premium boxes, attractive (and eco-friendly) wrapping material, and some personal touches like thank-you cards or a small token of appreciation. Ultimately, the whole transaction is about making customers feel like they matter and are appreciated. Shipping basics in Southeast Asia basics in Southeast Shipping

16 On the more practical side of packaging (and Then there’s the matter of which type of shipping), eCommerce sellers must follow some packaging to use. As weight and space are all- basic rules. Weight should be top of mind: the important here, any unnecessary numbers are heavier and denser the shipment, the more unwelcome. Use appropriately sized and secured expensive it would be to send out. boxes and pouches for each package. You don’t want to incur extra costs—or spend more on Shipping services consider two kinds: packaging materials the customer won’t have any dimensional or volumetric weight, and actual use for after unboxing. Or worse, have your weight. The latter is the weight of the product as customer received damaged packages! is. Dimensional weight takes into account the amount of space a product occupies in packages or boxes, and is calculated with this formula:

Length x Width x Height

Dimensional Factor

Shipping companies will see which one is heavier. Then they’ll use that larger number to calculate the actual shipping costs alongside the package’s estimated value and its destination city, region, or country. Shipping basics in Southeast Asia basics in Southeast Shipping

17 Lastly, know which items cannot be shipped over (locally or internationally) under any circumstances! Aside from being aware of your preferred shipping service’s weight and size limits, read its list of prohibited items—and don’t sell anything that appears on that list.

Among the goods that must never make their way out of any shipping facility are:

Flammable, self-igniting, and combustible goods like gasoline, kerosene, and sulfur Biological agents, radioactive and hazardous chemicals, and dangerous/controlled substances Firearms, weapons, and ammunition of any kind Liquids of any kind Illicit drugs of any kind, and drug paraphernalia Currency, tobacco, and alcohol of any kind Animals and plants of any kind Animal/Human parts and organs (including cremation ashes) Classiﬁed, oﬃcial, pornographic and obscene documents Propaganda material for social or political purposes Perishable goods Illegally reproduced or pirated items (e.g., CDs, DVDs) Lithium-ion batteries, jewelry and precious stones, and precious artifacts. Shipping basics in Southeast Asia basics in Southeast Shipping

18 06Ensure that your packages are insured

We’ve all heard of Murphy’s law (or Sod’s law). “Anything that can go wrong will go wrong” is almost always right.

The same goes for shipping as a whole. If a shipping company is working hard to get packages to its recipients, it will regularly face obstacles both within and beyond its control. From packages getting lost and sustaining damages en route to hubs and destination countries, and on to weather delays, serious storms, and accidents, there will always be unforeseen circumstances that both the seller and customer must wait out.

Whether or not your shipped package becomes undeliverable afterward, this is a reminder that you must insure everything you ship out. Shipping services normally ask its customers to sign a service contract before taking a package for shipment, which includes its terms for insurance claims. Read and ask questions about parcel insurance based on diﬀerent weights, sizes, and declared values—and be aware of the Pro Tip procedures once you do need to ﬁle a claim.

J&T Express oﬀers parcel insurance too. Shipping basics in Southeast Asia basics in Southeast Shipping

19 How can you ship your parcels with J&T Express?

01The online shopper places 02The online seller 03J&T Express picks up the parcel from the their order on an eCommerce packs the seller. Alternately, the seller can go to any marketplace or retail site. purchases up. J&T Express branch to drop their parcel oﬀ.

If the customer lives abroad: If the customer lives in the same country:

04J&T Express places the parcel on the next available plane out. 04J&T Express sends oﬀ the parcel to the customer.

05The parcel reaches the destination country, and goes through the all-important customs check.

06Customs determines what taxes and duties must be paid, and by how much. The duty will depend on what the parcel is, and which country it came from.

07Once the customs taxes and duties have been paid, 08J&T Express reaches the buyer’s the parcel leaves customs and goes out for delivery. doorstep and delivers their parcel. Shipping basics in Southeast Asia basics in Southeast Shipping

20 Local shipping

https://www.jtexpress.sg/contact-us Customers can https://www.jtexpress.sg/contact-uscontact us through our website to know more about shipping rates and terms of service.

Parcel deliveries are made from Monday to Sunday, with a time frame of one to three days.

International shipping

While local shipping presents its own logistical challenges, international shipping can take slightly longer, and requires more steps before the customer gets their purchases.

Your knowledge of the diﬀerent international shipping methods available (and their conditions) will help you and your customers know exactly when parcels can go from stockroom to doorstep. Shipping basics in Southeast Asia basics in Southeast Shipping

21 Delivery Timeframe (in # of working days) working of # (in DeliveryTimeframe Austria 8-10 Belgium and Czech Republic 7-10 Denmark 7-13 Europe Finland 9-12 International shipping France 5-8 Germany 4-6

J&T Express International International International Hungary 8-11 International Postal Line Haul Express Ireland and Poland 7-11 Shipping Method Italy 13-15

Weight 2kg 30kg 30kg Netherlands 5-10 Limit Portugal 10-15 Spain and Switzerland 7-12 Coverage Worldwide Southeast Worldwide Sweden 6-10 Asia Turkey 9-13 Duty Payment DDU DDU or DDP DDU or DDP United Kingdom 3-5 Rest of Europe 8-14 Delivery See next table 3-5 days (West Maximum of Timeframe Malaysia), 5 days

(in # of 6-9 days (rest of c Australia and Thailand 6-10 working days) Southeast Asia) fi Hong Kong and South Korea 5-8 Japan 7-9 Other Most Slightly higher Has a more information affordable cost, has basic comprehen- New Zealand 6-11 option parcel tracking sive tracking Taiwan 5-7 Asia-Paci system system Rest of Asia-Pacific 6-18

Canada 8-11 United States of America 7-9 Rest of South America 8-18 Rest of Middle East and Africa 8-18 Americas & Others Shipping basics in Southeast Asia basics in Southeast Shipping

22 07 Ready to ship?

Shipping your eCommerce products out to the world doesn’t have to be complicated, prohibitive, or expensive. It can deﬁnitely be an easy and aﬀordable process—if you go with the shipping company that’s right for you.

J&T Express delivers eCommerce packages within seven Southeast Asian nations: Singapore, Indonesia, Thailand, the Philippines, Malaysia, and Vietnam. We can get your customers’ orders to them wherever they are in their country, all year round. Shipping basics in Southeast Asia basics in Southeast Shipping

23 Visit the J&T Express Singapore website to learn more about what we do, how we do it, and all the ways we can help you and your eCommerce business.

https://www.jtexpress.sg/ https://www.jtexpress.sg/Let’s go! https://www.jtexpress.sg/